What to Know About the Illinois Condominium Property Act 

The Illinois Condominium Property Act (ICPA) is a state law that governs the creation, management, and operation of condo associations in Illinois. Understanding the ICPA is essential for Chicago condo owners, board members, and property managers to ensure compliance and enable them to navigate legal requirements effectively. You can find the full Act here, but below are some key areas of note.

Association Governance

Condo associations in Illinois operate much like mini-governments, but they must still abide by the rules and regulations outlined in the ICPA. The ICPA regulates condo associations in Chicago, including the process HOAs much follow for electing board members, complying with the rights and responsibilities of unit owners,and following procedures for conducting meetings and voting.

Association Finances and Assessments

The ICPA establishes requirements for managing association finances, including budgetingreserves,assessments, and financial reporting. It also outlines procedures for levying assessments, collecting delinquent assessments, and handling association funds.

Insurance and Liability

Chicago condo associations are required by state law to maintain several types of insurance. Section 12 of the Illinois Condominium Property Act (765 ILCS 605/12) explains state requirements, but individual associations may also have their own rules related to insurance. The ICPA requires condominium associations to maintain several types of insurance coverage, including those for common elements, liabilities and D&O Coverage, among others.

Amendments and Enforcement

The ICPA establishes procedures for amending an HOA’s declaration, bylaws, and rules and regulations. It also outlines enforcement mechanisms for resolving disputes, enforcing association rules, and addressing violations of the law.

These and other components of the ICPA should be familiar to condo owners and especially board members. If you have questions about managing your Chicago condo association and ensuring your HOA is abiding by all ICPA rules and regulations, get in touch with us at First Community Management.

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